LOS ANGELES -- Nothing makes gamers happier than an exciting E3. The annual show, taking place here this week, gives game publishers and developers a chance to strut like digital peacocks, spreading their polygonal feathers for everyone to gawk at.

And nothing makes the Electronic Entertainment Expo more exciting than new game consoles preparing for battle.

The 2013 holiday season will see Sony's PS4 and Microsoft's Xbox One vie for dominance and dollars. The fight started Monday though, when the companies held their pre-show news conferences, and saying blood was spilled might be an understatement.

Microsoft went first, apparently hoping to awe consumers with its slate of excellent-looking games. But then came the jaw-dropping news: Microsoft's Xbox One will be available in November -- at a cost of $500. It was if the air had been sucked out of the arena, as no one was expecting that high of a price.

With Microsoft already suffering from some sketchy public perception, stemming from the system's need to connect online at least once every 24 hours, as well as the still uncertain restrictions on software transfers (used games, rentals, lending to friends), the price might be the final straw for those on the edge of a purchase.

It didn't help Microsoft that its main competitor, Sony, capitalized on nearly every misstep Monday.

Taking direct digs at the Xbox One, Sony emphasized the things it's doing differently. No Internet connection required for disc-based games (except for online multiplayer, of course), no restrictions on used games and, by the way, the PS4 will cost only $400.

On a day that started far too early in the morning for most gaming journalists to truly claim consciousness, Microsoft opened by assuring customers that Xbox 360 owners won't be forgotten, emphasizing some admittedly great-looking games that are coming out in 2013 and beyond.

Two gamers try out the PlayStation 4 at the Sony PlayStation E3 media briefing in Los Angeles on Monday.,
(Jae C. Hong/Associated Press)

Most are third-party titles such as "Batman: Arkham Origins," "Assassin's Creed IV" and "Call of Duty: Ghosts." But the latter two titles will also be available on the Xbox One, allowing users to transition at their own pace.

There's even a new model for the Xbox 360, for sale as of Monday, that adopts the look of the Xbox One, in case you want a more unified-looking entertainment center.

The emphasis of the Microsoft conference was clearly on Xbox One. Opening with the highly anticipated "Metal Gear Solid V: The Phantom Pain," marking the first time a new, main installment of "Metal Gear Solid" has been released on a Microsoft system. It's a nice get for the next-gen powerhouse.

The emphasis remained mainly on games, with developer Rare announcing the resurrection of its long dormant fighting franchise "Killer Instinct." If this brawler plays as good as it looks, it also could be a major draw.

Developer Insomniac ("Ratchet and Clank" and "Resistance: Fall of Man") makes its Xbox debut with "Sunset Overdrive," a fast-paced, cartoon-like action game. Insomniac's signature wacky weapon selection could make this an addictive treat.

Capcom's "Dead Rising" series is coming back in time for the console's launch, this time with an open-world overflowing with ambulatory corpses. The power of the Xbox One enables players to put thousands of them on screen at once, making for a seriously chaotic ride.

Not every game looked great. "Ryse: Son of Rome" looks pretty, but the gameplay seems uninspired, as it's filled with on-screen button prompts to finish off enemies in battle. Perhaps my opinion will change once I play it, but for now I am unimpressed.

Creative types will be thrilled to hear that "Minecraft" is coming to the Xbox One, featuring bigger maps and expanded gameplay.

Also, "Project Spark" gives budding game makers a powerful tool set to create their own experiences. Working with the new and improved Kinect, you can make a basic game layout by merely speaking your choices to the game. Then you can refine the gameplay with SmartGlass until you have a fully functional game. The whole process looks intuitive and deep.

There were more games, including updates on already announced titles such as "Forza 5," "Battlefield 4" and "Quantum Break," as well as a few quick announcements without much gameplay for "Witcher 3," "D4," "Below" and "Crimson Dragon."

There were even quick teases for "Star Wars: Battlefront" and the next "Halo" game - right now it's simply titled "Halo" - both of which made the crowd go nuts, even though no gameplay was featured. Both titles, as with quite a few of the others, are due in 2014.

Last came "TitanFall," the first game from Respawn Entertainment, the house founded by the team behind "Call of Duty: Modern Warfare." More on this spectacular-looking game later this week.

The technical specs on both consoles are pretty much the same, with Microsoft having a more advanced camera and microphone system with its Kinect, but Sony investing in much faster RAM - DDR5 vs. DDR3.

It will be interesting to see if Microsoft can overcome these perceived shortfalls or if it will have to make adjustments to its plan. If the holiday season doesn't go Microsoft's way, I wouldn't be surprised to see a price cut in the spring 2014.

Beyond its disassociation with Microsoft's questionable decisions on cost and game ownership, Sony made an impact of its own with a fantastic software lineup.

Again, the company glossed over the PS Vita and PS3 offerings - many are the same as those for the Xbox 360 - and jumped into what's coming for the PS4.

After confirming that previously shown titles "Knack," "Killzone: Shaddow Fall" and "DriveClub" will arrive on the PS4 at launch, and "inFAMOUS: Second Son will land in spring 2014, Sony went on to showcase some new games.

"The Order: 1886" looks like a Steampunk title set in Victorian England. It's not clear what the characters are fighting with their crazy-looking automatic weapons, but when you add in the horse-drawn carriages and dirigibles, the whole wacky thing looks like a must-play.

Similarly, developer Quantic Dream's new game, "Dark Sorcerer," looks wonderfully weird. I say this having seen no gameplay, only an intense trailer where the evil-looking sorcerer (you know, the one from the title) forgets a line and the whole thing pans back like a movie set blooper.

Between the gorgeous graphics and what looks like a wicked sense of humor, I can't wait to find out more about this one.

Sony's biggest reveals came from publisher Square Enix.The much-delayed "Final Fantasy Versus XIII" has been transmogrified into "Final Fantasy XV." I'm not sure what of the original's DNA was left intact, but the footage shown was perhaps the most stunning of the day.

The lighting, textures, animation, frame rate -- well, pretty much everything -- looked unreal. It was one of those jaw-dropping moments that you remember through all of the noise vying for your attention.

Finally, Sony revealed a game based on "Mad Max," the film series set to receive a reboot in 2014. While not much was shown, the game has the movies aesthetic down cold. Look for more on this one in the months to come.

The only real negative takeaway from the Sony conference was a point the company did its best to gloss over completely.

While certain aspects of Sony's PSN service will remain free, in particular access to apps and other media, those who wish to play games online will have to upgrade to PlayStation Plus, a service that costs $60 per year.

One advantage Sony had over Microsoft in the current generation was its free online play versus Microsoft's Xbox Live Gold membership.While this has been eliminated, I don't see it as a deal breaker, particularly since Sony gives a lot of extras out with PlayStation Plus, including free monthly games.

To answer that, Microsoft will also give out free monthly games for Xbox Live Gold subscribers, starting immediately with "Fable 3." Families will also be able to all use the same Xbox Live Gold membership, no longer requiring a separate account for everyone in the house seeking their own online identity.

When you add everything together, Sony trounced Microsoft in this year's battle of the news conferences.

While I am sure Microsoft will not backpedal on the Xbox One price point, it would be wise for the company to rethink its positions on used games and online connectivity. These matters alone, without the additional cost, could drive some Xbox loyalists to the PlayStation camp.

All this news, and E3 2013 hadn't officially even started. In our next report, we will take a look at Nintendo's software showcase, as well as the Electronic Arts and Ubisoft news conferences.

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